India's technology landscape is vibrant. Powered by government support for technology research, development, and deployment, the country is undergoing rapid digital transformation, with expanding demand for technology solutions to address problems in areas as diverse as agriculture, education, finance, and healthcare. This is spurring dramatic growth in the country's technology sector and driving a surge in tech M&A activity within the country and cross-border.

 
Factors driving growth

Some of the factors driving India's technology growth include:

• Government support for digitization. The Indian government launched and promotes a program called "Digital India" that makes its services available to every citizen, including citizens in rural areas, electronically through improved online infrastructure and by increasing Internet connectivity. The program is designed to promote digital literacy and bridge the digital divide.
• Focus on Emerging Technologies. The Indian government invests in research and development in leading-edge technology areas such as AI, machine learning, data science, quantum computing, and semiconductors to enhance its technological capabilities.
• Skilled technology workforce. India has a large and growing skilled technology workforce, fueled by a robust education system. The country is a major provider of technical talent with a large number of engineering and computer science graduates entering the workforce annually.
• Dynamic tech startup environment. India is the third-largest startup ecosystem in the world, with startups leveraging emerging technologies including AI and blockchain in diverse sectors such as fintech, edtech, healthtech, and e-commerce.
• Global Capability Centers (GCCs). GCCs are facilities set up by multinational corporations to manage various business functions and processes for their parent organizations. India has become a major GCC hub for major global corporations enabling them to oversee areas such as engineering, research and development, information technology, retail, and banking and financial services.

India's tech sector is expected to continue growing. According to the National Association of Software and Service Companies (NASSCOM), an Indian non-governmental trade association and advocacy group, India's tech sector is expected to see a 5.1% revenue increase in 2025, reaching $282.6 billion, and more than $300 billion in 2026. Leading the way will be key sectors such as BFSI (banking, financial services, and insurance], healthcare, and automotive (electronic vehicles).

Surge in Indian Tech M&A

India's technology sector has seen a surge in M&A activity in recent years, driven by digital transformation and the country's growing demand for tech solutions. Tech M&A deal volume was robust in 2024, with 146 deals, an increase over 2023’s total of  127, and disclosed M&A deal value was $1.1B, despite only 21% of the transactions disclosing deal values. India's growing digital transformation and focus on innovation is likely to advance dealmaking even further in 2025  This is especially true for Private Equity firms looking to invest their substantial amount of available dry powder. For example, Singapore-based PE firm Everstone Capital recently acquired a majority stake in Indian software Wingify in a deal valued at about $200 million. And in India, PE firm Kedaara Capital invested $350 million in Impetus Technologies, a company that provides data, analytics, and enterprise AI solutions. In addition, PE firms such as Blackstone that already have large tech portfolios in India plan to increase them, eyeing the rising demand for AI and cybersecurity solutions as well as cloud computing.

The volume and value of strategic M&A deals involving Indian tech companies is also growing. According to Nasscom, strategic M&A deals contributed 59 per cent to the overall Indian M&A deal value in 2024. That activity is expected to rise in 2025 particularly in healthtech and fintech. For example, recently Indian conglomerate Reliance Industries acquired the Indian oncology-focused healthtech company Karkinos for approximately $43 million through its subsidiary Reliance Strategic Business Ventures.

India's IT services sector is also experiencing robust growth, driven by increasing demand for IT services and the digital transformation taking place across the country. According to the business intelligence platform Statista, the Indian IT Services market is expected to grow at a compound annual growth rate (CAGR) of 11.1% between 2024 and 2029, increasing from a market size of $14.5 billion to $44.02 billion. M&A deals in the sector are expected to following suit. This is especially true for offshore strategic buyers who are looking to expand into India.

India's startup environment

Reflective of India's vibrant tech environment is the country's startup ecosystem. India's large and skilled workforce and education system provide a strong intellectual and entrepreneurial base for the creation of tech startups. The startup environment is also buoyed by Indian government initiatives such as Startup India, which creates a friendly business environment for startups through tax benefits and tools for connection with investors and knowledge sharing. India has over 159,000 startups, making it the third-largest startup ecosystem globally.  In 2024, Indian startups raised over $12 billion ‒ a 20% increase from the previous year. That growth is expected to continue over the next few years. With increased IPO activity, a surge in startup numbers, and significant investment in sectors such as fintech, edtech, and AI, Indian startup revenue may reach $300 billion by 2026.

M&A activity involving Indian tech startups is also are expected to increase significantly in 2025, especially for startups in the fintech, ecommerce, and consumer services spaces. A recent example is Amazon's purchase of Indian Buy-Now-Pay-Later fintech company, Axio, for over $150 million, pending regulatory approval. AI is yet another driver of Indian startup M&A, as buyers look to integrate AI into their operations.

What the future holds

India's tech sector is poised for continued growth into the future. Projections indicate a potential $350 billion valuation by 2030, driven by innovation, digital transformation, and government initiatives. The sector offers significant M&A opportunities for companies seeking to gain access to India's technical expertise especially in areas such as AI, cloud computing, and cybersecurity. In addition, Indian tech companies are increasing their outbound M&A activity, targeting expansion into areas such as North America and Europe. The future of India's tech sector is indeed bright.

Upcoming Tech M&A Education in India

In April, Corum will be hosting three Merge Briefing seminars covering current Tech M&A market trends and insight into running a successful M&A process. For more information and to register, visit corumgroup.com/events.

15 April - Mumbai (JW Marriott Mumbai Sahar)
17 April - Bengaluru (Hyatt Centric MG Road)
29 April – Gurugram (Hilton Gurugram Baani City Centre)

Tech M&A Master Class in Bangalore India

In partnership with World Financial Symposiums (WFS), an international organization dedicated to educating technology leaders, Corum is hosting a Tech M&A Master Class on 11 -12 June at the Hyatt Centric MG Road Bangalore. This exciting two-day interactive workshop designed to cover all the must-knows of M&A for tech CEOs and founders: M&A case studies, deal structure analysis, hands-on valuation exercises, advanced negotiation tactics, due diligence, succession/estate planning, CEO worksheet, go-to-market checklists, and so much more.  For further information and to register, go to corumgroup.com/events.

Now is a good time to contact Corum

If you are interested in selling your tech company, contact Corum. Corum has advised on the sale of more technology companies than any other firm in history ‒ an unrivaled record driven by a highly professional, detailed M&A process designed to get sellers an optimal outcome that includes maximized valuations, a properly negotiated transaction structure, minimized liability, and optimized taxes.  Pursuing an M&A process with Corum will identify what legitimate buyers are in the market and what they are willing to pay for your company. With that knowledge, you may decide not to sell your company if you don't get offers that match your goals. Corum even allows you to take a hiatus ‒ a pause in the M&A process ‒ and return to it at a later time when conditions are more favorable to get the results you want. In any case, Corum’s team of experienced CEOs who have run, sold, and bought companies will advise and help you and your stakeholders achieve an optimal o